New York magazine is paring its circulation and raising its annual subscription price as billionaire owner, Bruce Wasserstein, struggles to control costs amid mounting losses.
As part of the changes, New York’s circulation will fall to 400,000 from 425,000, while the magazine’s introductory subscription price is jumping to $24.97 from $19.97. Subscription renewals will now peak at $59.97 a year.
The mag is also reducing its so-called “public place” circulation, which advertisers never value very highly, and reducing the number of copies it places on newsstands.
“Like every responsible company in this day and age, New York magazine is working hard to reduce costs and increase revenues,” publisher Larry Burstein said of the latest cuts. “We believe that our magazine is valuable and worth paying for and history has shown that our readers feel the same way.”
Since he plunked down $55 million to buy the magazine in late 2003-early 2004, Wasserstein’s total investment is now approaching $75 million, according to estimates.
To be sure, some of Wasserstein’s money has gone toward heavier paper stock in the magazine and boosting the mag’s award-winning Web site.
Still, New York is believed to have lost close to $5 million last year and with ad pages tumbling 37 percent to 772 through the May 25 issue, according to Media Industry Newsletter, losses are expected to be even higher this year.
To help control costs, New York will publish only 43 times this year, skipping two issues in the summer months and one at year end.
The magazine also pulled out of the industry trade association the Magazine Publishers of America, saving hundreds of thousands of dollars in dues.
When Wasserstein bought the magazine, it was widely seen as a vanity play, particularly since he beat out high-profile suitors like Mort Zuckerman, Harvey Weinstein and Nelson Peltz in his purchase from Henry Kravis’ Primedia.
New York is the second major weekly magazine to trim circulation in a bid to stem losses. This week Newsweek, which lost an estimated $20 million last year, launched a completely redesigned magazine and cut June circulation to 1.5 million from its current 2.1 million.